42

CHROMIUM
(Data in thousand metric tons, gross weight, unless noted)

Domestic Production and Use: The United States consumes about 12% of world chromite ore production in various
forms of imported materials (chromite ore, chromium ferroalloys, chromium metal, and chromium chemicals). Imported
chromite was consumed by two chemical firms, one metallurgical firm, and four refractory firms to produce chromium
chemicals, chromium ferroalloys, and chromite-containing refractories, respectively. Consumption of chromite ore by
end use was: metallurgical and chemical industry, 94%; refractory industry, 6%. Consumption of chromium ferroalloys
and metal by end use was: stainless and heat-resisting steel, 79%; full-alloy steel, 8%; superalloys, 3%; and other end
uses, 10%. The value of chromium materials consumption was about $385 million. Secondary chromium is recovered
from stainless steel scrap.

Salient Statistics—United States:1 1991 1992 1993 1994 1995e

Production: Mine — — — — —
Secondary 96 102 92 99 117
Imports for consumption 310 324 330 273 379
Exports 18 18 21 33 13
Government stockpile releases 17 (30) 68 49 30
Consumption: Reported (excludes secondary) 323 334 327 307 270
Apparent2 (includes secondary) 413 378 484 390 537
Price, chromite, yearend:
Turkish, dollars per metric ton, Turkey 130 110 110 110 230
South African, dollars per metric ton, South Africa 50 60 60 60 80
Stocks, industry, yearend 118 118 103 101 76
Net import reliance3 as a percent of
apparent consumption 73 73 75 75 78

Recycling: In 1995, chromium contained in purchased stainless steel scrap accounted for 22% of demand.

Import Sources (1991-94): Chromium contained in chromite ore and chromium ferroalloys and metal: South Africa,
40%; Turkey, 16%; Zimbabwe, 7%; Russia, 6%; and other, 31%.

Tariff:4 Item Number Most favored nation (MFN) Non-MFN5

12/31/95 12/31/95
Ore and concentrate 2610.00.0000 Free Free.
Ferrochromium, high-carbon 7202.41.0000 1.9% ad val. 7.5% ad val.

Depletion Allowance: 22% (Domestic), 14% (Foreign).

Government Stockpile: The stockpile conversion programs by which stockpiled chromite ore is upgraded to
ferrochromium and nonstockpile grade ferrochromium is upgraded to chromium metal were completed in 1994.

Stockpile Status—9-30-95
Average
Uncommitted Committed Authorized Disposals chromium
Material inventory inventory for disposal Jan.-Sept. 95 content
Chromite ore:
Chemical-grade 175 44.7 144 45.4 28.6%
Metallurgical-grade 509 308 509 127 28.6%
e
Refractory-grade 255 78.4 110 72.6 23.9%
Chromium ferroalloys:
High-carbon ferrochromium 738 — 427 0.528 71.4%
Low-carbon ferrochromium 283 — — — 71.4%
Ferrochromium-silicon 52.9 — — — 42.9%
e
Chromium metal 7.69 — — — 100%

Events, Trends, and Issues: Chromite ore is not produced in the United States, Canada, or Mexico. Chromite ore is
produced in the Western Hemisphere only in Brazil and Cuba. Virtually all of Brazilian production is consumed in
Brazil. Cuban production is small. The two largest chromite ore producers, accounting for two-thirds of world
production, are Kazakstan and South Africa. Both are currently in the process of major political change. Economic
and political

Prepared by John F. Papp, (703) 648-4963.

 43

CHROMIUM
reorgan ization in the Former Soviet Union has resulted in reduced demand. This lull in demand may be followed by
strong growth-driven demand resulting from the institution of reforms in those countries. South Africa has been the
major supplier of chromite ore to Western industrialized countries. In 1989-90, world demand for ferrochromium by the
metallurgical industry exceeded supply, resulting in increased prices followed by production capacity expansion.
Chromite ore prices also increased slightly. The end of the cold war in 1991 coincided with generally weak economic
conditions that reduced chromium demand. In 1995, prices recovered from having been suppressed by excess
production capacity resulting from the dissolution of the U.S.S.R.6 in 1991 and excess ferrochromium capacity resulting
from expansion worldwide during 1990-92. Western economy demand remains firm while industry restructures.

Chromium releases into the environment are regulated by the U.S. Environmental Protection Agency. Workplace
exposure is regulated by the U.S. Occupational Safety and Health Administration.

World Mine Production, Reserves, and Reserve Base:

Mine production Reserves7 Reserve base7

1994 1995e (shipping grade)8
United States — — — 10,000
Albania 223 250 6,100 6,100
Brazil 360 400 10,000 18,000
Finland 573 600 38,000 46,000
India 909 1,000 27,000 59,000
Iran 129 130 2,400 2,400
Kazakstan 2,020 2,500 320,000 320,000
Russia 143 150 4,000 460,000
South Africa 3,590 3,800 3,100,000 5,500,000
Turkey 790 800 8,000 20,000
Zimbabwe 517 550 140,000 930,000
Other countries 319 400 29,000 38,000
World total (rounded) 9,570 10,600 3,700,000 7,400,000

World Resources: World resources exceed 11 billion tons of shipping-grade chromite, sufficient to meet conceivable
demand for centuries. About 95% of chromium resources are geographically concentrated in southern Africa.
Reserves and reserve base are geographically concentrated in southern Africa and Kazakstan. The largest U.S.
chromium resource is in the Stillwater Complex in Montana.

Substitutes: There is no substitute for chromite ore in the production of ferrochromium, chromium chemicals, or
chromite refractories. There is no substitute for chromium in stainless steel, the major end use of chromium, nor for
chromium in superalloys, the major strategic end use of chromium. Chromium-containing scrap can substitute for
ferrochromium in metallurgical uses. Substitutes for chromium-containing alloys, chromium chemicals, and chromite
refractories generally increase cost or limit performance. According to the National Academy of Sciences, substituting
chromium-free materials for chromium-containing products could result in savings of about 60% of chromium used in
alloying metals, about 15% of chromium used in chemicals, and 90% of chromite used in refractories given 5 to 10
years to develop technically acceptable substitutes and accept increased cost.

e
Estimated.
1
Data in thousand metric tons of contained chromium, unless noted otherwise.
2
Calculated demand for chromium is production + imports - exports + stock adjustment.
3
Defined as imports - exports + adjustments for Government and industry stock changes.
4
In addition to the tariff items listed, certain imported chromium materials (see United States Code, chapter 26, sections 4661 and 4672) are subject
to excise tax.
5
See Appendix B.
6
As constituted before Dec. 1991.
7
See Appendix C for definitions. Reserves and reserve base data rounded to no more than 2 significant figures.
8
Shipping-grade chromite ore is deposit quantity and grade normalized to 45% Cr2O3.

Mineral Commodity Summaries, January 1996